Wolters Kluwer 2011 Half-Year Results

Nancy McKinstryCEO and Chairman of the Executive Board

Boudewijn BeerkensCFO and Member of the Executive Board

Jack LynchMember of the Executive Board

Half-Year 2011

Results

July 27, 2011

This presentation contains forward-looking statements. These statements may be

identified by words such as "expect", "should", "could", "shall", and similar expressions.

Wolters Kluwer cautions that such forward-looking statements are qualified by certain

risks and uncertainties, that could cause actual results and events to differ materially

from what is contemplated by the forward-looking statements. Factors which could

cause actual results to differ from these forward-looking statements may include,

without limitation, general economic conditions, conditions in the markets in which

Wolters Kluwer is engaged, behavior of customers, suppliers and competitors,

technological developments, the implementation and execution of new ICT systems or

outsourcing, legal, tax, and regulatory rules affecting Wolters Kluwer's businesses, as

well as risks related to mergers, acquisitions and divestments. In addition, financial

risks, such as currency movements, interest rate fluctuations, liquidity and credit risks

could influence future results. The foregoing list of factors should not be construed as

exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or

revise any forward-looking statements, whether as a result of new information, future

events or otherwise.

Unless otherwise stated, this presentation is based on continuing operations, excluding

the planned divestment of the pharma business announced today. 2010 comparative

information has been re-stated accordingly.

2

Forward-looking Statements

2011 Half-Year Results

Highlights

Divisional Overview

Financial Overview

Summary & Outlook

Q&A

3

Agenda


Building momentum in the portfolio; 3% revenue growth, 1% organic

Solid execution of strategy: strong online and software growth, globalization

Strategic divestment of pharma business

– Focus on leading positions in professional information and clinical decision

support solutions

– Strengthens growth profile of the business

4

Wolters Kluwer 2011 HY1 2010 HY1

Revenue (€ million) 1,619 1,605

Organic Growth 1% 0%

Ordinary EBITA Margin 20.1% 20.2%


Highlights for First-Half Year

Highlights

Divisional Overview

Financial Overview

Summary & Outlook

Q&A

5

Agenda


Growth accelerating in North America, with 5% organic growth

– Corporate Legal Services (CLS) 8% organic growth; 17% growth in transactions

– Broader market recovery measured with slower pace in Europe

Strong operating margin improvement and cash flow support growth investments

across the business

6

Legal & Regulatory Strong growth in North America, trends improving in all geographies

Legal & Regulatory 2011 HY1 2010 HY1

Revenue (€ million) 695 704

Organic Growth 0% (3%)



Strong growth in software driven by new sales

Strategic acquisitions in Belgium (TopPower) and Netherlands (Twinfield)

enhance leading tax technology base

Change in composition and phasing of bank products in the small firm segment

(2% of annual division revenues) shifts revenue to second half year

7

Tax & Accounting 2011 FY organic growth expected to be better than 2010

Tax & Accounting 2011 HY1 2010 HY1


Organic Growth (1%) 1%



Regulatory complexity continues to increase; fuels business

40% revenue growth outside of the U.S.

Strong growth from the Financial Services; 7% organic

– Mortgage Document Services, Banking and Compliance (Gainskeeper)

– Transactional revenue increase of 14%

Double-digit growth in ARC logics; reduced volumes at Transport Services

Investment in international expansion impacts HY margin; expected to improve

through HY2

8

Financial & Compliance Services Increasing compliance requirements and globalization lead to growth

Financial & Compliance Services 2011 HY1 2010 HY1





Record revenue growth; 6% organic; led by Clinical Solutions, Medical Research

Strong pipeline of innovative products being launched (OvidMD)

Clinical Solutions drives strong double-digit organic growth and extends leading

positions through acquisitions of Medicom and Lexi-Comp

Product mix improves margin

9

Health & Pharma Solutions Strong results delivered through electronic innovation

Health & Pharma Solutions 2011 HY1 2010 HY1





Leading positions in content (Ovid and LWW) and Clinical Solutions

Strategic divestment of pharma business improves fundamentals

– Focus on leading positions in professional information and clinical decision support

– Strengthened growth profile


Wolters Kluwer Health & Pharma SolutionsPlanned divestment sharpens focus on leading positions

Leading Positions in Content and Clinical

Decision Support

Online tools for

medical research

(Student , Professional)

Books, for Students

and Professionals

Point of care solutions

for Clinicians

Clinical Solutions Medical ResearchProfessional &

Education

Wolters Kluwer Health

Information products

and marketing

communication services

Data and Business

intelligence for

pharma industry

Healthcare

Analytics

Marketing and

Publishing Services

Pharma Solutions

11

Clinical SolutionsMarket leading solutions that improve outcomes and efficiency


• Leading global brands

• #1 market positions in fast

growing markets

• Products improve

outcomes and efficiency

• Supported by Healthcare

reform and IT adoption

Clinical Decision

Support

(CDS)

Clinical Drug

Information

(CDI)

Clinical

Documentation

(CD)

Clinical Pharmacy

Productivity &

Surveillance

(CPPS)

UpToDate

Lexi-Comp

MediSpan

Medicom (China)

Facts & Comparisons (Retail)

Pharmacy OneSource

ProVation

Order Sets

MD/MCG

Clinic Note

POINT

OF CARE

12

Medical Research: OvidExtraordinary Global Reach – Bringing Evidence from Research into Practice


• 13 million users in

12,500 institutions

worldwide

• 1.3 billion pages

views/year

• Tremendous depth and

breadth of content

• Partners with >150 of

the world’s leading

publishers

• Used in 157 countries,

6 languages

13

Professional & Education (P&E)Unique content positions: expanding opportunities with electronic delivery

Example: 5-Minute Clinical Consult in Print and Online


Boudewijn Beerkens

CFO and Member of the

Executive Board

Financial

Overview

July 27, 2011

15

Pharma Divestment Results reflect continuing business; Pharma results moved to discontinued

HY 2011 FY 2010

Revenue (€ million)

Continuing business 1,619 3,311

Discontinuing operations 108 245

Total Wolters Kluwer 1,727 3,556

Ordinary EBITA (€ million)

Continuing business 325 717

Discontinuing operations 1 10

Total Wolters Kluwer 326 727

Implications for guidance

of continuing business

Ordinary EBITA Margin:

Diluted Ordinary EPS:

Free Cash Flow:

+100 bp

(2%) to (3%)

(3%)


Unless otherwise stated, this presentation is based on continuing operations, excluding the planned

divestment of the pharma business announced today. 2010 comparative information has been re-stated

accordingly

2010 HY1 2011 HY1

Free Cash Flow (million)

20.2% 20.1%

16

Financial Highlights Growth trends improving

Ordinary EBITA Margin

+130 bp

-10 bp

-€40

Organic Growth

1.0%

-0.3%

Diluted Ordinary EPS (€ cents)

65

63

+2 cents


H&PS18%

F&CS10%

T&A29%

L&R43%

2011 HY1 Revenue €1,619 million

Six months ended June 30

(€ million)

Legal & Regulatory

Tax & Accounting

Health & Pharma Solutions

Financial & Compliance Services

Total

Revenue Strong improvement in Health & Pharma Solutions

17

2011 2010 ∆ ∆ CC ∆ OG

695 704 (1%) 0% 0%

467 474 (2%) (1%) (1%)

295 284 4% 9% 6%

162 143 14% 17% 3%

1,619 1,605 1% 3% 1%

∆-% Change; ∆CC-% Change constant currencies (EUR/USD = 1.33); ∆OG–% Organic growth


Subscription & other recurring

75%

Books 8%

FS transaction 2%

CLS transaction 5%

Advertising 1%

Training & Consulting 5%

Other cyclical 4%

18

Continued Growth in Electronic & Service Subscriptions

Revenue Composition


(€ million) 2011 HY1 2010 HY1 ∆ ∆ CC ∆ OG

Electronic & service subscription 820 783 5% 7% 3%

Print subscription 242 260 (7%) (6%) (6%)

Other non-cyclical 149 148 0% 2% 3%

Recurring revenues 1,211 1,191 2% 4% 1%

Books 136 148 (8%) (5%) (6%)

Cyclical products 272 266 2% 5% 4%

Total revenues 1,619 1,605 1% 3% 1%



-6%1%

2%

-1%-3% 1%2%

3%

-2%

1%

4% 4%

0%

-1%

3%

6%

L&R T&A F&CS H&PS

2009 FY

2010 HY1

2010 FY

2011 HY1

Momentum BuildingTrends remain positive

Momentum continues to build in the subscription base (75% of total revenues)

Growth profile of Health & Pharma Solutions division improves

Bank product revenue shift impacts first half-year comparison

1 -2009 numbers as reported/unadjusted

2 –adjusted for bank product restructuring

Reported1 organic growth

19

2%2


H&PS15%

F&CS8%

T&A37%

L&R40%

2011 HY1 EBITA €325 million

Ordinary EBITA Strong improvement in H&PS offset by bank product restructuring

20

Excluding Corporate costs of €20 million

Ordinary EBITA Ordinary EBITA margin

2011 2010 2011 2010

136 131 19.6% 18.6%

129 137 27.6% 28.9%

51 47 17.3% 16.5%

29 30 17.8% 21.0%

(20) (21)

325 324 20.1% 20.2%


(€ million)

Legal & Regulatory

Tax & Accounting



Corporate

Total


21

Springboard Operational ExcellenceProgram continues to deliver on expectations

Multi Generational

Technology Plan

Content

Re-engineering

Supplier

ManagementOffshoring

Business

Optimization

1All figures at 2008 constant currencies (EUR/USD = 1.37)

Program savings and costs

€ million (pre-tax) 2008 2009 2010 2011 HY1 2011 (est) Total

Cost savings1 16 84 146 88 170 – 180 170 - 180

Exceptional program cost

(non-recurring)

45 68 58 30 74 - 89 245 - 260

Strong execution of multi-year, global program

Structural, process and capability driven improvements

Program will end in 2011


Division Acquisition Growth Market

T&A Twinfield, TopPower Global Tax Software

H&PS Lexi-Comp, Medicom Clinical Decision Support

L&R NRAI (announced) Corporate Legal Services

22

Key Acquisitions in 2011 HY1Strengthening key global market positions

All acquisitions are expected to be accretive to ordinary EPS in first full year

All acquisitions expected to cover their cost of capital within 3-5 years


23

Acquisitions Discipline: Acquisitions Meet or Exceed Financial Criteria

1 Excludes NDC acquisition which is part of discontinued operations2 2010 acquisitions are calculated based on revenue projections, all other acquisitions are calculated from actual results

Year Acquisitions, Including:EPS accretive in

Year 1

Year ROIC exceeds

WACC

2005DeAgostini, Nolis, Osra, Eon, Best Case,

Tripoint, Entyre, Amerisearch, Boucher 3

20061 Heymanns, ProVation, Sage, ATX Kleinrock,

UTS TaxWise 3

2007MCFR, TeamMate, GEE, AppOne, Europea

del Derecho 4

2008 MYOB, Addison, UpToDate, IntelliTax 2

2009 Coimbra, Axentis, Schleupen 1

20102

Tax Compliance Software Solutions,

FRSGlobal, Edital, Pharmacy OneSource,

LexisNexis Germany 2


Cash &

equivalents +

derivatives

Long-term debt maturity; No refinancing need before 2014

Phasing of cash flow, dividend, share buy-back, and acquisitions impacts

HY2011 ratio

24

Debt Maturity and Leverage Ratio

Financing Profile

Debt maturity profile

Net-Debt-to-EBITDA Ratio

2.4

3.2

2.92.7

2.93.0


Improved top line performance; trends continuing

Springboard continues to deliver on expectations

Shareholder returns in HY1 through dividend and share buy-back

Solid free cash flow and balance sheet support strong and flexible

financial position

Financial Summary


Highlights

Divisional Overview

Financial Overview

Summary & Outlook

Q&A

26

Agenda


27

Guidance Reiterated for Total Wolters Kluwer

2011 Guidance

Ordinary EBITA Margin 20.5 – 21%

Free Cash Flow1 ≥ €425 million

Return on Invested Capital (after tax)1 ≥ 8%

Diluted Ordinary EPS1,2 €1.50 – €1.55

Financing result ~ €130 million

Benchmark tax rate ~ 26%

Diluted weighted average shares ~ 307 million2

1at constant currencies (EUR/USD = 1.33)2before share buy-back

Note: the contribution from discontinued operations is expected to have the following impact

on full-year results for the ongoing business: improved Ordinary EBITA margin approximately

100 basis points, reduced ordinary EPS and Free Cash Flow 2-3% and 3% respectively.


Market trends are favorable, North America and emerging markets

continue to improve; slower pace in Europe

Portfolio continues to improve – more software, better results

Strategic acquisitions extend market leadership in high growth segments

Pharma divestment will sharpen focus and growth profile

On track to meet guidance

28

Summary

Growth Momentum building in the portfolio, confident in outlook


Q & A

July 27, 2011

2011 HY Results – Additional Financial Results

Company Overview

Trends Supporting the Business

Portfolio Transformation 2003-2011

30

Appendix


Six months ended June 30 (€ million) 2011 2010 ∆ ∆ CC1 ∆ OG

Revenue 1,619 1,605 1% 3% 1%

Ordinary EBITA 325 324 0% 3% 1%

Ordinary EBITA margin (%) 20.1% 20.2%

Exceptional items (44) (26)

Amortization of publishing rights (75) (72)

Impairment of goodwill and publishing rights - -

Financing results (59) (65)

Taxation on income (27) (34)

Results on disposals (3) 4

Result from discontinued operations (108) (5)

Net profit 9 126 (93%) (98%)

31

Income Statement

1CC – At constant currencies (EUR/USD = 1.33)

2011 H1 Results

Six months ended June 30 (€ million) 2011 2010

Net Profit 117 131

Non-controlling interests 0 0

Net profit to equity holders 117 131

Amortization of publishing rights1 74 71

Taxation on amortization and impairments1 (25) (25)

Results on disposals (after taxation) 1 (4)

Exceptional items (after taxation) 29 17

Ordinary net income 196 190

Diluted weighted average # shares 303 million 298 million

Diluted ordinary EPS €0.65 €0.63

Diluted ordinary EPS (constant currencies)2 €0.66 €0.66

32

Ordinary Net Profit and diluted ordinary EPS

in-line with last year

1Adjusted for non-controlling interests2At constant currencies (EUR/USD = 1.33)


Six months ended June 30 (€ million) 2011 2010 ∆ ∆ CC1 ∆ OG

Revenue 1,619 1,605 1% 3% 1%


Ordinary EBITA margin (%) 20.1% 20.2%

Ordinary net income 196 190 3% 1%

Diluted ordinary EPS (€) 0.65 0.63 2% 0%

Pro-forma diluted EPS excl disc ops (€) 0.39 0.44

Diluted weighted average # shares (million) 303 298

33

Ordinary Net Income up 3%Improved EBITA and favorable financing results drive improvement

1CC – At constant currencies (EUR/USD = 1.33)

2011 H1 Results

34

Reconciliation: Effective Benchmark Tax Rate


(€ million) June 30 2011 June 30 2010

Ordinary net income 196 190

Ordinary income before tax 266 259

Reported income tax expense 27 34

Tax benefit on amortization and impairments 25 25

Tax benefit on result on disposals 2 0

Tax benefit on non-benchmark costs 15 9

Tax on ordinary income 69 68

Effective benchmark tax rate 26% 26%

2011 Effective Benchmark Tax Rate flat at 26%

2011 H1 Results


(€ million) June 30 2011 June 30 2010

Non-current assets 4,636 5,020

Operating working capital (664) (707)

Non-operating working capital (84) (287)

Working capital (748) (994)

Capital employed 3,888 4,026

Total equity 1,369 1,656

Long-term debt 2,129 1,927

Other non-current liabilities 390 443

Total financing 3,888 4,026

Net debt 2,194 2,100

Net debt/equity ratio 1.6 1.3

Net debt/EBITDA ratio 3.0 2.9

35

Balance Sheet

2011 H1 Results


(€ million) 2011 2010 ∆% ∆% CC1

Ordinary EBITA 325 324 0% 3%

Depreciation 51 50

Autonomous movements in working capital 0 0

Financing charges (102) (101)

Paid corporate income tax (80) (33)

Appropriation of provisions (34) (37)

Other 6 5

Net cash flow from operating activities 166 208 (20%) (18%)

Net capital expenditure (54) (59) (8%) (5%)

Dividends received 1 1

Appropriation of Springboard provisions (after tax) 18 21

Free cash flow 131 171 (23%) (22%)

Cash conversion 99% 97%

36

Free Cash Flow

¹ CC – At constant currencies (EUR/USD = 1.33)

2011 H1 Results

By Region By Media format By Product


(€ million) 2011 2010 ∆ ∆ CC ∆ OG

Electronic & service subscription 299 302 (1%) 1% (1%)



Recurring revenues 480 492 (3%) (1%) (2%)

CLS transactional 74 66 12% 17% 17%

Books 56 61 (8%) (8%) (8%)

Other cyclical 85 85 0% 1% 3%

Total revenues 695 704 (1%) 0% 0%


Ordinary EBITA margin 19.6% 18.6%

Legal & Regulatory Revenue

Note: Historic numbers adjusted for discontinued operations; reflects UK business as part of Europe.


372011 H1 Results

38

By Region By Media Format By Product


(€ million) 2011 2010 ∆ ∆ CC ∆ OG



Other non-cyclical 98 105 (7%) (6%) (6%)

Recurring revenues 426 430 (1%) 0% 0%

Books 21 24 (13%) (10%) (10%)

Cyclical products 20 20 0% (2%) (3%)

Total revenues 467 474 (2%) (1%) (1%)

Ordinary EBITA 129 137 (6%) (6%) (6%)


Tax & Accounting Revenue


2011 H1 Results

2011 H1 Results

By Business Unit By Media Format By Product


(€ million) 2011 2010 ∆ ∆ CC ∆ OG




Recurring revenues 207 191 8% 15% 10%

Books 59 63 (6%) (1%) (1%)

Cyclical products 29 30 (4%) (2%) (2%)

Total revenues 295 284 4% 9% 6%



Health & Pharma Solutions Revenue

39

Note: Historic numbers adjusted for discontinued operations. Medical Research BU includes Journals which were previously reported as P&E


By Business Unit By Media Format By Product


(€ million) 2011 2010 ∆ ∆ CC ∆ OG


Print subscription 2 2 27% 13% 13%


Recurring revenues 98 78 26% 28% 8%

FS Transactional 27 24 11% 14% 14%

Cyclical products 37 41 (9%) (4%) (13%)

Total revenues 162 143 14% 17% 3%

Ordinary EBITA 29 30 (4%) 0% 0%


Financial & Compliance Services Revenue

40


2011 H1 Results


Company Overview



41

Appendix


‣ Serving professional

customers worldwide

‣ Approximately 19,000

employees in more than 40

countries across North

America, Europe, Asia

Pacific, and Latin America

‣ Leading Market Positions

(Number 1 or Number 2

market positions globally)

‣ 3.6 EUR billion revenues

A Global Operating Company With global market positions and leading brands

432011 H1 Results

Legal & Regulatory

Leading BrandsServing professionals

Tax & Accounting



‣ Kluwer

‣ CT Corporation

‣ Aspen Publishers

‣ LA LEY

‣ CT TyMetrix

‣ Croner

‣ IPSOA

‣ Loislaw

‣ CCH

‣ Addison

‣ A3 Software

‣ CorpSystem

‣ ProSystem fx

‣ Lippincott

Williams &

Wilkins

‣ Ovid

‣ ProVation

Medical

‣ UpToDate®

‣ AppOne

‣ AuthenticWeb

‣ Bankers Systems

‣ CCH Sword

‣ CCH TeamMate

‣ Expere

‣ Pci

442011 H1 Results

Investing in Wolters KluwerStrong Operating Results, Positioned for Future Growth

Leading market positions (#1 or #2 globally)

Strong free cash flow (2010: €445 mln), recurring revenue (75%)

Growth potential and economics improve with digitalization

Margin expansion supported by portfolio mix and global leverage

Progressive dividend and share-buy-back increase shareholder returns

Consistent investment in high growth segments drives future growth

452011 H1 Results


Company Overview



45

Appendix


MegatrendsLong term trends supporting our business

ImplicationMegatrend

‣ Exponential growth in information

‣ Increased regulation

Information quality and knowledge of regulatory changes are key points of differentiation

‣ Customer business models changing with strong focus on productivity and profits

‣ Shortage of professionals

Increase focus on information-enabled solutions and process management which improve professionals’ expertise, lower costs and increase productivity

‣ Growing global convergence of professional standards and compliance processes

Providers with global product lines will be advantaged

462011 H1 Results

Information GrowthThe internet has accelerated the availability of information

472011 H1 Results

Physician ShortageThe growing and aging U.S. population foreshadows an increasing shortage of physicians over the next 15 years

Index of growth

482011 H1 Results

By 2020, 75% of the members of the U.S. accounting trade organization are eligible for retirement

492011 H1 Results

By 2020, there will be 2 million lawyers in China - up from 170,000 today

502011 H1 Results

IFRSInternational Financial Reporting Standards

Over 85 countries require

IFRS reporting for all

domestic, listed

companies.

source: U.S. Securities and

Exchange Commission

Approximately 117 countries

permit or require IFRS for

domestic, listed companies

and many more are preparing

to transition.

source: International Accounting

Standards Committee

Some estimate that the

number of countries requiring

of accepting IFRS could grow

to 150 in the next few years.

source: International Accounting

Standards Committee

512011 H1 Results

source: International Council of Nurses

13millionnurses

source: AMA and SK&A

2.3millionphysicians

source: IFAC

2.5millionaccountants

Professionals Worldwide

522011 H1 Results


Company Overview



53

Appendix


Portfolio EvolutionMix shift and favorable market trends support future growth

Market trends support growth

Growth potential and economics improve as portfolio evolves

— Favorable retention and growth characteristics from electronic solutions

— Strong global market positions provide a base for growth

— Consistent investment supports sustainable results

Margin expansion supported by portfolio mix and global leverage

— Continued shift to higher margin online and software solutions

— Leverage global scale and platforms to drive cost effectiveness

532011 H1 Results

Portfolio EvolutionOur portfolio has shifted towards subscription products which

provide greater value…

Books 23%

Cyclical 15%

2004 Revenue: €3.0 billion

Books 10%

Cyclical 19%

2010 Revenue: €3.6 billion

Recurring

Revenue

62%

Recurring

Revenue

71%

Note: Cyclical products include advertising, pharma promotion, mortgage transactions, M&A/IPO/UCC transactions, training and consulting

542011 H1 Results

31%

38%42%

46% 47%49%

52%54%

2003 2004 2005 2006 2007 2008 2009 2010

Software & Online Revenue as a % of Total Revenue

9 %

CAGR

Portfolio Evolution… Reflecting the evolution to an information, software and service

provider

552011 H1 Results

2011 HY

72% electronic

+ services

Portfolio EvolutionThis evolution positions the portfolio for improved revenue growth

and profitability

2004 2010 2004 2010 2004 2010

Information Centric< 25% Electronic

Margin 14-18%

Retention rate 80-85%

Information/Software Blend25-50% Electronic

Margin 18-22%

Retention rate 85-90%

Software/Services > 50% Electronic

Margin 21-30% +

Retention rate 85-90% +

Indexed R

evenue G

row

th

-1 %

CAGR

1-2%

CAGR

10%

CAGR

562011 H1 Results

Delivering Value For ShareholdersOur strong market positions and portfolio transformation have delivered increased value for shareholders

Diluted Ordinary Earnings per Share Diluted Free Cash Flow per Share

Dividend per Share Return on Invested Capital

+22% +32%

+63%+10%

57

€0.91

€1.48€1.35

€1.48

€0.55

€0.67

6.5%

8.6%

2011 H1 Results

Wolters Kluwer 2011 Half-Year Results

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